Benefits of internal hiring
The early onboarding process is important, but a continued relationship with an employee is just as pivotal. Employees aren’t done being recruited and retaining relationships post-hire keeps them in the long term hiring pipeline. Many companies look externally to fill positions when they may only need to ask their already established workforce. The benefits of internal recruiting are apparent, but only 24% of companies said their organization had a well-defined program for advancement opportunities; 12% had no programs at all and 31% said their internal hiring process is mostly ad hoc.
These numbers show that companies have hiring from within low on their priority list when filling a position. Should it be? Read on for the three top reasons your recruiters may want to look to those they’ve already found.
Your hope for a new employee is to see them perform well. You’ve done your homework, read who knows how many applications and found what looks to be the perfect fit…right? In a study conducted by the Human Capital Institute and Oracle, it was found that 60% of employers said internally promoted employees performed significantly better than talent recruited into similar positions. 59% of respondents said they were more globally competitive as a result of their internal mobility programs. Hiring from within may be your most competitive and productive choice.
Tip: Even if your current employees don’t fit the job description, ask them for any referrals. A referred employee is more likely to fit into your company culture and values than those that have no connection to your organization.
It’s one thing to attract potential candidates but it’s another to retain them after the hiring process. Retention is a must for companies since the costs of replacing employees can be higher than simply leaving the position unfilled. How does a company improve their retention while being more attractive to job candidates? Availability for promotions within a company, of course! 87% of respondents said internal mobility programs support attraction and retention efforts while 66% of respondents do not have an internal mobility program at all. Employees and job seekers are interested in finding a job that will provide future growth and career opportunities.
It’s like killing two birds with one stone. Retain your employees and attract new candidates as well. Hiring from within and providing these opportunities for promotion reduces your chances of losing talented employees.
Tip: Appreciating your employees is a must. Giving them an opportunity to rise in your organization is a great way to show them just how much you appreciate their time and development.
It’s universal: companies want to make more money or save money wherever they can. External hires make 18% more than those promoted internally and are 61% more likely to be fired. Pay them less and have a more efficient retention rate? Sounds like another no brainer.
Tip: Take into consideration your employee’s previous pay when negotiating a salary for the new position. A 10-20% raise may seem like a lot to them when in reality you were prepared to spend more on a completely new hire.
Regardless of who your next hire is, the investment into their future with the company cannot be ignored. Start that future off right with the best onboarding process! Onboarding goes beyond the first days and can ensure that your new employee will benefit your company for years to come.